Answer:
Production cost per unit (under variable cost) = $69.55
Explanation:
Given:
Total unit produced = 36,000
Direct labor = $29 per unit
Direct material = $34 per unit
Variable overhead = $236,000
Total Fixed overhead = $126,000
Computation:
Variable Overhead per unit = $236,000 / 36,000 = $6.55
Production cost per unit (under variable cost) = Direct Labor per unit + Direct material per unit + Direct Variable Overhead per unit
Production cost per unit (under variable cost) = $29 + $34 + $6.55
Production cost per unit (under variable cost) = $69.55
